¶ Advanced SAP SSO Licensing and Pricing for Cost Optimization
Implementing SAP Single Sign-On (SSO) can significantly enhance security and user experience across an organization’s SAP landscape. However, to maximize the return on investment, it is crucial to understand the licensing models and pricing structures associated with SAP SSO solutions. Advanced knowledge of SAP SSO licensing enables enterprises to optimize costs, avoid unexpected expenses, and tailor deployments to meet business needs.
This article provides insights into SAP SSO licensing and pricing models and offers strategic recommendations for cost optimization.
SAP offers different licensing options for Single Sign-On, typically based on:
- Charges are based on the number of unique users accessing SAP systems via SSO.
- Suitable for organizations with predictable, stable user counts.
- Important to track concurrent versus named users, as licensing may vary.
- Fees depend on the number of SAP systems or components enabled for SSO.
- Ideal for organizations with a limited number of SAP systems but large user bases.
- Can be cost-effective for system-centric environments.
- Available primarily for cloud offerings such as SAP Identity Authentication Service (IAS).
- Pricing is based on subscription tiers, often aligned with user volumes or authentication requests.
- Provides flexibility to scale up or down depending on demand.
- The volume of users directly impacts licensing costs.
- Distinguish between named users (registered individuals) and concurrent users (users logged in simultaneously).
- Enabling SSO on multiple SAP landscapes (ECC, S/4HANA, BW, Portal, etc.) can increase licensing fees.
- Consider consolidating or standardizing systems to reduce costs.
- Advanced authentication (e.g., biometric, smart cards, MFA) may involve additional license or infrastructure costs.
- Basic Kerberos or password-based SSO tends to be less expensive.
- Extending SSO beyond SAP to third-party or cloud applications (via SAP IAS or federated SSO) may incur extra fees.
- Conduct a detailed user analysis to categorize active SSO users.
- Opt for licensing models that match user behavior (e.g., concurrent user licensing if available).
- SAP IAS offers subscription pricing and can reduce upfront investments.
- It supports flexible scaling and integration with both SAP and non-SAP apps.
- Reduce the number of systems requiring separate SSO licenses by migrating to centralized platforms like SAP S/4HANA or SAP Cloud solutions.
- Use advanced authentication only for high-risk users or sensitive systems.
- Apply basic SSO methods for general users to reduce infrastructure costs.
- Engage with SAP account teams to explore volume discounts or bundled licensing.
- Consider multi-year contracts for predictable budgeting.
A multinational company with 5,000 SAP users across 10 systems might face:
- Per user license cost: $30/user/month
- Per system license cost: $5,000/system/year
By analyzing usage patterns, they find only 3,000 users require full SSO access, and 7 systems need SSO enabled. Optimizing licenses reduces costs by 40%, saving tens of thousands annually.
¶ Monitoring and Compliance
- Regularly audit user access and license usage to avoid over- or under-licensing.
- Use SAP License Administration tools to track compliance.
- Align license types with actual user access to optimize renewals.
Understanding advanced SAP SSO licensing and pricing models is essential for achieving cost-effective and scalable Single Sign-On solutions. By strategically selecting licensing types, optimizing user counts, and leveraging cloud identity services, organizations can secure their SAP environments while controlling costs.
A thoughtful licensing approach empowers IT teams to balance security, user convenience, and budgetary constraints, ultimately driving greater business value from SAP SSO implementations.
Keywords: SAP SSO licensing, SAP Single Sign-On pricing, cost optimization, SAP Identity Authentication Service, SAP license management, user licensing models